Menifee City Council
May 20, 2026

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•Identified opportunities to improve compensation and overall working conditions.

City of Menifee 2026 AB2561 Compliance Summary
This agenda item satisfies the requirement to hold a public hearing before the City Council during the fiscal year. During the public hearing, staff will present data regarding: (i) the number and percentage of vacancies by bargaining unit; (ii) ongoing and planned recruitment activities; and (iii) retention strategies and any obstacles identified in the hiring process. This hearing is occurring prior to adoption of the City’s 2026/2027 Mid-Cycle Budget, as required.

The City of Menifee currently recognizes six bargaining units: the Menifee City Employees’ Association (MCEA) General, Professional, and Mid-Management Units; the Menifee Miscellaneous Police Employees Association (MMPEA); the Menifee Police Officers Association (MPOA); and the Menifee Police Management Association (MPMA). The City has notified and invited all six recognized employee organizations to attend and present during the public hearing.

As noted previously, additional reporting would be required if any single bargaining unit had a vacancy rate of 20 percent or higher. As of the date of this hearing, no bargaining unit has reached or exceeded the 20 percent vacancy threshold that would trigger additional reporting obligations.

As of April 1, 2026, the City had 15 full-time represented vacancies, reflecting an average vacancy rate of 4.9%. Table 1 below outlines the vacancy rates per bargaining unit.

TABLE 1: VACANCY RATES BY BARGAINING UNIT AS OF APRIL 1, 2026 Bargaining Unit Vacancy
Rate
The Menifee City Employees’ Association (MCEA) General Unit 4.7% The Menifee City Employees’ Association (MCEA) Professional Unit 0% The Menifee City Employees’ Association (MCEA) Mid-Management Unit 4.8% The Menifee Miscellaneous Police Employees Association (MMPEA) 0% The Menifee Police Officers Association (MPOA) 12.2%
The Menifee Police Management Association (MPMA) 0%

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. AB 2561 Text

2. Summary of Citywide Vacancy Rates by Bargaining Unit Item Title: 11.2
2026 Annual Report for Citywide Vacancies, and Recruitment and Retention Efforts Item Page Number: 2

Menifee Mayor and City Council
May 20, 2026
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Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment.
[Approved by Governor September 22, 2024. Filed with
Secretary of State September 22, 2024.]
legislative counsel’s digest
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the acti vities of employee or ganizations of their o wn choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job v acancies within a single bargaining unit meets or e xceeds 20% of the total number of authorized full-time positions, the bill w ould require the public agenc y, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts la ws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agenc y or school district may pursue any available remedies to seek reimbursement for these costs.

92 STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL

Item Title: 11.2
2026 Annual Report for Citywide Vacancies, and Recruitment and Retention Efforts Item Page Number: 3

Menifee Mayor and City Council
May 20, 2026
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The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares as follows:
(a)  Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements.
(b)  High job vacancies impact public service deli very and the w orkers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c)  There is a statewide interest in ensuring that public agency operations are appropriately staf fed and that high v acancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a)  (1)  A public agenc y shall present the status of v acancies and recruitment and retention ef forts during a public hearing before the governing board at least once per fiscal year.
(2)  If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget.
(3)  During the hearing, the public agenc y shall identify an y necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.
(b)  The recognized employee organization for a bargaining unit shall be entitled to mak e a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c)  If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agenc y shall, upon request of the recognized emplo yee organization, include all of the follo wing information during the public hearing:
(1)  The total number of job vacancies within the bargaining unit. (2)  The total number of applicants for v acant positions within the bargaining unit.
(3)  The average number of days to complete the hiring process from when a position is posted.
(4)  Opportunities to improve compensation and other working conditions. (d)  This section shall not pre vent the go verning board from holding additional public hearings about vacancies.
(e)  The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be gi ven ef fect without the in valid provision or application.
(f)  For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Go vernment Code, furthers, within the 92 — 2 — Ch. 409

Item Title: 11.2
2026 Annual Report for Citywide Vacancies, and Recruitment and Retention Efforts Item Page Number: 4

Menifee Mayor and City Council
May 20, 2026
Page
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meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Di vision 4 of Title 2 of the Go vernment Code for costs mandated by the state pursuant to this act. It is recognized, ho wever, that a local agenc y or school district may pursue an y remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.

O
92 Ch. 409 — 3 —

Item Title: 11.2
2026 Annual Report for Citywide Vacancies, and Recruitment and Retention Efforts Item Page Number: 5

Menifee Mayor and City Council
May 20, 2026
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3 1
4 Summary of City-wide Vacancy Rates by Bargaining Unit As of April 1, 2026, the City of Menifee had eighteen (15) full-time represented positions vacant, with an overall vacancy factor of 4.9% shown by Bargaining Units below.

Bargaining Unit Vacancy Rate
The Menifee City Employees’ Association (MCEA)
General Unit

4.7%
The Menifee City Employees’ Association (MCEA)
Professional Unit
0%
The Menifee City Employees’ Association (MCEA)
Mid-Management Unit

4.8%
The Menifee Miscellaneous Police Employees
Association (MMPEA)
0%
The Menifee Police Officers Association (MPOA) 12.2%
The Menifee Police Management Association
(MPMA)
0%
Item Title: 11.2
2026 Annual Report for Citywide Vacancies, and Recruitment and Retention Efforts Item Page Number: 6

Menifee Mayor and City Council
May 20, 2026
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CITY OF MENIFEE
SUBJECT: Public Safety Community Facilities District
MEETING DATE: May 20, 2026
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Director of Strategic Programs and Initiatives
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution authorizing staff to proceed with the formation of a Public Safety Community Facilities District (CFD); and

2. Adopt the amended City Council Policy CC-20 Special Assessment and Community Facilities District Goals and Policies.

DISCUSSION
Prioritizing both a thriving economy and safe and vibrant community as strategic priorities, the City Council discussed and provided feedback on the City moving forward with establishing a Public Safety Services CFD at a special workshop held on January 21, 2026. The purpose of the CFD is to help fund essential City services for residential development.

At the workshop, the City Council received a presentation on the legal requirements for establishing a CFD under the Mello-Roos Community Facilities Act of 1982 (Government Code §53311 et seq.), the fiscal impact analysis completed to determine recommended annual rates for single family residential, and multi-family residential projects, annual adjustments to the rates, and information on implementation steps that would be required to move forward. The City Council expressed support for moving forward with the formation of a public safety CFD to provide needed funding for increasing costs of public safety resulting from new developments within the City.

The resolution presented for City Council consideration would formalize authorization for staff to proceed with the necessary steps to establish a Public Safety Community Facilities District (CFD).

A summary of the formation process is outlined on the following page.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 1

Menifee Mayor and City Council
May 20, 2026
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City of Menifee Staff Report
Public Safety Community Facilities District (CFD)
May 20, 2026

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TABLE 1: FORMATION PROCESS
Step Description Council Action
Cornerstone residential
project identified
An initial residential project
identified as eligible for
participation into the public
safety CFD will go through
the formation process.

Public Hearing,
Ordinance/Resolution(s)
adopted establishing/forming
CFD with initial boundary.

Future residential project
annexations
Future residential projects will
be annexed into the public
safety CFD as they are
either:
- Conditioned by
Conditions of Approval
(non-entitled projects)
- Agreed/negotiated with
respective development
(entitled projects)
Individual Public Hearing(s)
annexations similar to
maintenance CFD.

Summary of Proposed Public Safety CFD Rates & Annual Adjustment Based on the fiscal impact analysis completed and presented at the January workshop, the proposed Public Safety CFD would include the following parameters:
•Applicable to future residential developments (single family residential: $525 per unit, and multi-family residential: $411 per unit)
•Annual rate adjustment of: Greater of CPI or 4% (City would retain the discretion each year to determine how long and whether to levy at the maximum rates) •Proposed rates would be applied at the indicated amounts, including affordable housing units.

Amendments to CC-20 Special Assessment and Community Facilities District Goals and Policies
Staff also recommend amending existing Policy No. CC-20 Special Assessment and Community Facilities District Goals and Policies to revise existing language within Section 5, Procedure, as follows:
“The City will condition the financing of city facilities through a facilities CFD or through participation in a JCFA agreement on the applicant’s agreement to participate in a public safety CFD.”
Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 2

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May 20, 2026
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City of Menifee Staff Report
Public Safety Community Facilities District (CFD)
May 20, 2026

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Participation in a City Facilities CFD or Joint Community Facilities District (JCFA) is optional, and at the request of the developer. Through a Facilities CFD or JCFA CFD, the developer can finance infrastructure improvements through the issuance of bonds which are repaid through special taxes levied on units within the development, generally over 30 years. Including participation in the City’s Public Safety CFD as a requirement for Facilities CFDs will provide the City with a mechanism to negotiate and prioritize the CFD as a component of new residential projects.

Next Steps
If approved, the next steps would include the following actions:

1. Public Hearing for Public Safety CFD formation with the first residential project to be included in the CFD;

2. Subsequent residential projects would be annexed through respective public hearings to annex into the CFD;

3. Annual levy, maximum and applied tax rates would be calculated and presented for City Council adoption and submittal to the County of Riverside Tax Collector’s office.

STRATEGIC PLAN OBJECTIVE
Thriving Economy

FISCAL IMPACT
If approved to move forward, there would be various one-time initial CFD formation costs including staff time required for the various ordinance(s), resolution(s), and CFD set-up steps. While the residential project identified as the cornerstone CFD zone development would cover some of the formation costs, the City would share some of the associated costs. Future annexations into the Public Safety CFD would cover all associated annexation costs. The Public Safety CFD would provide the City with an ongoing and dedicated restricted revenue stream to help support public safety needs year over year.

ATTACHMENTS

1. Resolution

2. Redlined Policy

3. CFD 2026-S (Safety Services) - RMA
Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 3

Menifee Mayor and City Council
May 20, 2026
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1 RESOLUTION NO. 26-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA,

AUTHORIZING STAFF TO PROCEED WITH THE FORMATION OF A PUBLIC SAFETY

COMMUNITY FACILITIES DISTRICT (CFD)
WHEREAS, the City Council of Menifee has prioritized both fostering a thriving economy and safe and vibrant community as strategic priorities of the City; and WHEREAS, diversifying revenue resources supports the City’s efforts for long-term financial strength and sustainability; and
WHEREAS, the City prioritizes maintaining proactive and responsive municipal services, including public safety, and recognizes the increased need for service as the community continues to develop, and;
WHEREAS, a Fiscal Impact Analysis (FIA) was completed assessing the public safety services needs associated with new residential projects and the revenue to associated with residential projects to support such services, and such FIA determined the estimated revenues associated with new residential projects is not sufficient to cover the associated on-going public safety services, and; WHEREAS, The City has explored options to help ensure new residential development can provide on-going fiscal support to accommodate public safety needs, and; WHEREAS, on January 21, 2026, a Special City Council Workshop was held to review the legal and fiscal parameters of forming a public safety CFD as an available option to support the service needs of new residential development; and
WHEREAS, at said workshop, the City Council provided feedback and general support of exploring a public safety CFD.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California:

Authorizes staff to proceed with the necessary next steps to establish a Public Safety Community Facilities District (CFD), including, but not limited to, conducting the required public hearing for the formation of the first residential project within the CFD and collecting applicable CFD formation/annexation costs.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 4

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May 20, 2026
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Public Safety CFD
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PASSED, APPROVED AND ADOPTED this 20th day of May 2026
___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 5

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May 20, 2026
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4929-4925-4992v3/200299-0000
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2 7
0 CITY OF MENIFEE
City Council Policy
Policy Number: CC-20
Approving Authority:

City Council
Effective Date: 9/6/11
Last Modified: 9/3/25
Subject
Special Assessment and
Community Facilities District
Goals and Policies
Page | 1

1. PURPOSE
Pursuant to Section 53312.7 of the California Government Code, the City Council of the City of Menifee (hereafter the “City Council”) hereby states its goals and policies concerning the use of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (hereafter the “Mello-Roos Act”) in providing adequate public capital infrastructure, facilities and equipment for the residents of the City of Menifee (the “City”). The following goals and policies shall apply to all community facilities districts (each a “Community Facilities District” or “CFD”) and to all assessment districts (each an “Assessment District” and together with any Community Facilities District, the “Districts” or individually, a “District”) under the improvement acts of 1911, 1913, 1915 and 1972 (the “Improvement Acts”) hereafter formed by the City. Any policy or goal stated herein may be supplemented or amended or deviated from upon a determination by the City Council that such supplement, amendment or deviation is necessary or desirable, and any policy or goal stated herein shall be deemed amended or supplemented in the event, and as of the date, if ever, that such amendment or supplement is required to ensure compliance with the Act or any other laws of the State of California or federal laws of the United States of America.

2. POLICY
The City has developed the following Policies and Procedures on debt financing as guidelines to assist concerned parties in following the City’s approach to special assessment and community facilities district debt financing. It is the City’s goal to support projects that address a public need and provide a public benefit. Proposed projects requesting special assessment or community facility district debt financing will be evaluated to determine if such financing is financially viable, and in the best interest of the City, and current and future City and project residents. These Policies and Procedures are designed to comply with Section 53312.7 of the Government Code.

The City of Menifee will consider developer or property owner initiated applications requesting the formation of community facilities or special assessment districts and the issuance of bonds to finance eligible public facilities and/or public services necessary to serve newly developing residential projects, and may consider commercial and/or industrial projects. The following criteria will be applied to all districts by the City staff with final determination and findings to be made by the City Council:

A. When tax-exempt financing of project public facilities will result in a significant public benefit.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 6

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies B. When a Specific Plan has been adopted on the property or the City has negotiated and executed a Development Agreement addressing project implementation either of which includes requirements to form a District to finance public improvements or services.

C. Each time a District is formed for the benefit of a development project where the maintenance requirements will exceed normal City standards or where such development requires the provision of additional services, the City will require the creation of an alternative financing mechanism to pay for such maintenance requirement or such additional services, including but not limited to annexation to a City maintenance District.

D. Existing neighborhoods may apply to the City for the use of a District to finance local or neighborhood serving facilities. The City will apply applicable provisions of these policies to those financing programs for existing neighborhoods.

E. The City shall make the determination as to whether a proposed District shall proceed under the provisions of the Improvement Acts or the Mello-Roos Act. The City may confer with consultants and the applicant to learn of any unique district requirements such as facilities serving the regional area or long-term development phasing prior to making any final determination.

F. All City and consultant costs incurred in the evaluation of new development district applications and the establishment of districts will be paid by the applicant(s) by advance deposit increments. The City shall not incur any non-reimbursable expense for processing assessment or community facilities districts. Expenses not chargeable to the district shall be borne by the applicant.

G. The City shall not offer CFD financing for projects that consist of condo or single family homes where 10% or more of the proposed units are intended for or used as rental property unless the developer receives express advance written approval from the City. The foregoing restriction shall not apply to multifamily residential or commercial property.

H. The city shall make a determination on whether to offer CFD financing for projects with fewer than 100 units on a case-by-case basis. An additional security in the form of a secondary reserve may be required for these developments at the city’s discretion.

I. With the goal of reducing property owners’ debt burden whenever possible, the Finance Department will diligently monitor the economic environment and take advantage of refunding opportunities when doing so would lead to a reduction in the special assessment paid by property owners.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 7

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies

3. FINANCE COMMITTEE
All proposed Districts shall be reviewed by the City Finance staff for adherence to policy prior to being presented to the Finance Committee and City Council. Any variances from policy as well as any other material information will be noted by the Finance staff and reported to the City Council with recommendation for action.

4. RESOURCE CONSULTANTS
Bond Counsel Financial
Advisor Assessment
Engineer Special Tax
Consultant Appraiser
Economist/Market Absorption Specialist
Bond Underwriter
Disclosure Counsel
Fiscal Agent
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of a Special District and the issuance of bonds. Prior consent of the Proponent(s) shall not be required in the determination by the City of the consulting and financing team. Costs of the Proponent(s) and any costs of consultants working on behalf of the Proponents(s) are not eligible for reimbursement from a future issuance of bonds.

No firm may serve as both design engineer and engineer of work and assessment engineer or special tax consultant on the same project, pursuant to Section 87100 of the Government Code.

5. PROCEDURE
A. ELIGIBLE PUBLIC FACILITIES; PRIORITY
Priority for Community Facilities District financing shall be given to public facilities directly benefiting the City as well as those improvements identified by the City as the most necessary to serve the specific needs of the portion of the City in which the Community Facilities District will be located. The financing of public facilities to be owned and operated by public agencies other than the City shall be considered on a case-by-case basis. The list of eligible public facilities include but are not limited to the following and may include facilities included as part of the City’s or another public agency's development impact fee program to the extent permitted by the Mello-Roos Act or the Improvement Acts:

Streets, highways and bridges Flood control facilities
Street lighting Libraries
Traffic signals and safety lighting Public utilities
Parks Police and fire protection facilities
Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 8

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies Governmental facilities Recreation facilities, including golf courses
Sanitary sewer facilities
Storm drain facilities
Biological mitigation measures
involving land acquisition, dedication
and revegetation
Potable and reclaimed water facilities Landscaping
In general, streets, highways and bridges; street lighting; traffic signals and safety lighting; parks; and storm drain facilities will have priority over the others, however, the City will evaluate the needs of the project area and has final determination as to any facility’s eligibility for financing, as well as the prioritization of facilities to be included within a financing district. Use of bond proceeds for grading and right-of- way acquisition will be reviewed by the City and bond counsel on a case-by-case basis.

It is secondarily the policy of the City to assist in the provision of other public facilities when to do so is necessary, in the sole discretion of the City Council acting as the legislative body of the affected Community Facilities District, to serve taxpayers residing within or owning property within the City boundaries.

Additionally, the City may finance any one or more of the types of services specified in Section 53313 of the Act. Priority for Community Facilities District financing shall be given to services provided by or directly benefiting the City and, if multiple services are to be financed, with no service having priority over another service; provided, however, the City has final determination as to any service’s eligibility for financing. The City shall not finance services on behalf of other public agencies.

It is acknowledged the Mello-Roos Act permits the financing of fee obligations imposed by governmental agencies, the proceeds of which fees are to be used to fund public capital improvements. The City will consider applications to finance fee obligations on a case-by-case basis. The City may condition the financing of facilities included as part of the City’s or another public agency’s development impact fee programs on the applicant’s agreement to participate in the financing of City services for public safety. The City will condition the financing of city facilities through a facilities CFD or through participation in a JCFA agreement on the applicant’s agreement to provide a funding mechanism to cover on-going public safety costs associated by the respective residential project, including participation in a public safety CFD.

When it is determined by the City that fees are to be financed, the City may collect a premium of the total fees to be financed. Such premium shall not exceed twenty percent (20%) of the total fees to be financed. The City may use the premium to finance public facilities and improvements directly benefiting and identified by the City as the most necessary to serve the specific needs of the portion of the City in which the Community Facilities District will be located.

B. CREDIT QUALITY – VALUE-TO-LIEN RATIO
Credit quality will be determined in part by the District (or improvement area) Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 9

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies property value-to-lien ratio which will be at a minimum 4:1, including the value of the financed public improvements to be installed, and considering all prior or Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 10

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies pending special taxes or improvement liens and debt. Value-to-lien ratios of individual parcels will be reviewed to analyze credit quality. Acceptance by the City of the value-to-lien ratio will be determined by an appraisal with recommendations from bond counsel, any financial advisor, and the underwriter with consideration of the project and diversification of land ownership.

The appraisal shall be coordinated by, under the direction of, and addressed to the City. The applicant shall pay all costs associated with the preparation of the appraisal report through an advance deposit of funds with the City. The appraiser should be credentialed by the State of California Office of Real Estate Appraisers and be a Member of the Appraisal Institute (MAI). The appraiser should have demonstrated prior experience in appraising property subject to special assessments or taxes in conjunction with a bond offering.

The appraisal shall be conducted in accordance with criteria, standards and assumptions in accordance with the California Debt and Investment Advisory Commission Appraisal Standards for Land-Secured Financings, and based upon the recommendations from the City’s financing team. In every case, the appraisal shall reflect national Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and employ all, or a combination of: discounted cash flow, bulk sale comparable, raw land value as is, and project build-out values.

Upon receiving an appraisal, determining the value-to-lien ratio, and evaluating the project and current underwriting criteria, the City will require letters of credit or other security to secure payment of the special taxes to be levied annually on properties within the District. Letters of credit or other security may also be required for individual parcels of specific property ownership within a District.

For projects with a significant amount of development or the refunding of outstanding special assessment and community facilities district debt, the assessed value of property or other mass appraisal techniques may be options for the establishment of credit quality.

Depending on the circumstances of the development, a market absorption study may be required. City will retain the consultant to prepare a report to verify market absorption assumptions and projected base sales prices of the properties subject to the special taxes or assessments in the District. The market absorption study shall be completed prior to completion of the appraisal, and the appraisal shall take into consideration the conclusions of the market absorption study. The City may require a mortgage study to analyze existing types of mortgages in the District to provide additional information to potential bond investors.

C. SECURITY
The City may, at its discretion, require additional credit enhancement to be provided by one or more developers and/or landowners to increase the credit quality of any CFD bond issue and to reduce the potential for a bond default. Such credit enhancements may be required in situations where there is an insufficient value-to-lien ratio, where a substantial amount of the property within a CFD is Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 11

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May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies undeveloped, where property ownership is concentrated, where tax delinquencies are present in parcels within the CFD, and in any other situation as required by the City. The form of any credit enhancement is subject to approval by the City, and the City shall impose specific requirements with respect to such credit enhancement; however, such credit enhancement will generally be in the form of an irrevocable standby letter-of-credit or a cash deposit, will be required to be in an amount not less than 200% of the share debt service or a 2-year security payment of the special tax requirement allocable to the applicable developer- owned parcels for which such credit enhancement is required, and will be required to remain in effect until the share of debt service allocable to such developer- owned parcels is less than 20% of the annual debt service on all outstanding bonds for such CFD. The Chief Financial Officer or the City Manager have discretion to waive this requirement in the face of extenuating circumstances.

6. EQUITY OF SPECIAL TAX FORMULAS AND MAXIMUM SPECIAL TAXES Special tax formulas for Community Facilities Districts shall provide for minimum special tax levels that satisfy the following expenses of all Community Facilities Districts: (a) at least 110 percent debt service coverage for all Community Facilities District bonded indebtedness, (b) the reasonable and necessary administrative expenses of the Community Facilities District, and (c) amounts equal to the differences between expected earnings on any escrow fund and the interest payments due on bonds of the Community Facilities District. Additionally, the special tax formula may provide for the following:
(a) any amounts required to establish or replenish any reserve fund established in association with the indebtedness of the Community Facilities District, (b) the accumulation of funds reasonably required for future debt service, (c) amounts equal to projected delinquencies of special tax payments, (d) the costs of remarketing, credit enhancement and liquidity facility fees, (e) the cost of acquisition, construction, furnishing or equipping of facilities, (f) lease payments for existing or future facilities, (g) costs associated with the release of funds from an escrow account, and (h) any other costs or payments permitted by law, including, but not limited to, financing any one or more of the types of services specified in Section 53313 of the Mello-Roos Act.

The special tax formula shall be reasonable and equitable in allocating public facilities’ costs to parcels within the Community Facilities District. Unless the City determines that special circumstances warrant a change, the special tax formula originally accepted for the Community Facilities District shall remain the same in order to ensure equity as originally envisioned at the time of Community Facilities District formation. At the time of formation of the Community Facilities District, exemptions from the special tax may be given to parcels that are publicly owned, are held by a property owner’s association, are used for a public purpose such as open space or wetlands, are affected by public utility easements making impractical their utilization for other than the purposes set forth in the easements, or have insufficient value to support bonded indebtedness.

It is the goal of the City that maximum special taxes or assessments on residential owner- occupied property, when taken together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, do not exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property. Nevertheless, special taxes on residential owner-occupied property, when taken Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 12

Menifee Mayor and City Council
May 20, 2026
Page
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Policy CC-20

Special Assessment and Community Facilities District Goals and Policies together with ad valorem taxes, any other special taxes levied pursuant to the Act and assessments applicable to such property, may exceed in any year two percent (2%) of the greater of the assessed value or appraised value of such property if the City determines at the time of formation of a Community Facilities District that over the term of the bonds, the special taxes, ad valorem taxes and assessments are expected to average two percent (2%) or less per year of the greater of the assessed value or appraised value of such property. It is further the policy of the City to comply with the provisions of Section 53321 of the Act with respect to the escalation of maximum taxes.

Special taxes will only be levied on an entire County Assessor’s parcel, and any allocation of special tax liability of a County Assessor’s parcel to leasehold or possessory interest in the fee ownership of such County Assessor’s parcel shall be the responsibility of the fee owner of such parcel (except where the City is the fee owner of the parcel and has, subsequent to the date of adoption of these goals and policies, leased the parcel pursuant to a lease with a term of at least 5 years, in which case the lessee shall have the responsibility for the special tax liability) and the City shall have no responsibility therefor and has no interest therein. Failure to pay or cause to be paid any special taxes in full when due shall subject the entire parcel to foreclosure in accordance with the Act.

The City shall have a report prepared that: (a) recommends special tax rates and methods of allocation among parcels in the proposed Community Facilities District, and (b) evaluates the special tax proposed to determine its ability to adequately fund identified public facilities, City administrative costs, services (if applicable) and other related expenditures.

A. The City shall retain a special tax consultant to prepare a Rate and Method of Apportionment and the report described above that:

B. Recommends a special tax formula for the proposed Community Facilities District.

C. Evaluates the special tax proposed to determine its ability to adequately fund identified public facilities and proposed services, City administrative costs, services (if applicable) and other related expenditures. The Rate and Method of Apportionment of special taxes shall be designed to ensure sufficient revenues are produced in case of final development at lower densities than anticipated.

D. The special tax consultant shall also address the resulting aggregate tax burden of all proposed special taxes plus existing special taxes, ad valorem taxes and assessments on the properties within the Community Facilities District.

7. TERMS AND CONDITIONS OF BONDS
The City shall establish all terms and conditions of the bonds. The City will control, manage and invest all District-issued bond proceeds. Each bond issue shall be structured to adequately protect bond owners and to not adversely impact the bonding capacity or credit rating of the City. Unless otherwise authorized by the City, the following shall serve as bond requirements:

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 13

Menifee Mayor and City Council
May 20, 2026
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Policy CC-20

Special Assessment and Community Facilities District Goals and Policies A. A reserve fund equal to the lesser of (i.) 10% of the issue price of the bonds, (ii.) maximum annual debt service or (iii.) 125% of average annual debt service, or as otherwise deemed appropriate by the City.

B. For Districts containing residential property, the timing of bond sales(s) and/or Rate and Method of Special Tax Apportionment shall be such that special taxes or special assessments are levied no later than the first fiscal year following the occupancy of residential units. For all Districts, interest shall not be funded (capitalized) beyond what is permitted in the Mello-Roos Act or the Improvement Acts.

C. The repayment of principal shall begin on the earliest principal payment date for which sufficient special tax revenues can be made available.

D. Beginning with the commencement of the repayment of principal, annual debt service shall be level. The City may consider an increasing annual debt service, but such increases shall not exceed 2% per year for the term of the bonds.

E. The maximum special tax shall be established to assure that the annual revenue produced by levy of the maximum special tax shall be equal to at least 110% of the maximum annual debt service plus administration. Under no circumstances shall the coverage be used to support the issuance of Bonds.

F. Prior to the issuance of the bonds, the City shall authorize its bond counsel to commence and process to final judgment an action establishing the validity of the proceedings, special tax and issuance of bonds, unless advised to the contrary by such bond counsel.

G. In instances where multiple series of bonds are to be issued, the first series shall include public facilities of highest priority acceptable to the City.

H. All statements and materials related to the sale of special assessment or Community Facilities District bonds shall emphasize and state that neither the good faith, nor the taxing power of the City is pledged to the security or repayment of the bonds. The sole sources of revenues to secure bond owners are special taxes, annual assessments or foreclosure proceeds.

8. AGREEMENTS
Agreements will be prepared incidental to District formation proceedings in a form satisfactory to the City and consistent with these policies. These agreements may include, but not be limited to:

A. Deposit and Reimbursement Agreement.

B. Funding and Acquisition Agreement.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 14

Menifee Mayor and City Council
May 20, 2026
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Policy CC-20

Special Assessment and Community Facilities District Goals and Policies C. Joint Community Facilities Agreements with any other public agency entitled to receive any portion of the bond proceeds or entitled to own and operate any of the public facilities financed by bond proceeds.

Prior to the formation of a District, all of the agreements specified shall be duly approved and executed by the relevant parties; provided that any Joint Community Facilities Agreement may be approved and executed prior to the approval of the issuance of bonds.

Prior to execution of any agreements, such agreements shall be reviewed and approved by bond counsel and the City Attorney and approved by the City Council.

9. USE OF CONSULTANTS
The City shall have the sole discretion as to selection of consultants and determination of fees and expenses of all consultants necessary for the formation of the District and the issuance of bonds, including the underwriter(s), bond counsel, financial advisor, assessment engineer, appraiser, trustee, paying agent, market absorption consultant, and the special tax consultant after reasonable consultation with the applicant. Prior consent of the applicant shall not be required in the determination by the City of the consulting and financing team.

The City shall also be responsible for determining the structure of the bonds to be issued, including the method of sale (negotiated or competitive), the need for bond ratings, the need for escrow provisions, investment of bond proceeds, and all other terms and conditions incidental to structuring and closing a bond issuance.

Consultants of the City for the District shall comply with the requirements of the Fair Political Practices Commission and of the California Government Code.

10. ACQUISITION PROVISIONS
The City shall have final determination as to whether it will allow the financing of public facilities through acquisition or if the improvements will be constructed by the City.

In the event the acquisition provisions of the Municipal Improvement Act of 1913 or the Mello-Roos Act are utilized, the City, at its sole discretion, will determine the facilities to be acquired, the priority of acquisition of completed facilities and the method of determining reasonable acquisition costs. Applicable bidding and prevailing wage requirements are extensive and will be addressed during the preparation of the funding and acquisition agreement.

The City has determined (pursuant to Section 53329.5(c) of the Government Code) that the public interest will not be served by allowing property owners to elect to enter into agreements with the City to perform construction work after competitive construction bids have been received. The City Council will make such a determination in the resolution of intention regarding the formation of a Community Facilities District.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 15

Menifee Mayor and City Council
May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies

11. DISCLOSURE TO PURCHASERS
Developers who are selling lots or parcels that are within a Community Facilities District shall provide disclosure notice to prospective purchasers that complies with all of the requirements set forth in Section 53341.5 of the Government Code. The disclosure notice must be provided to prospective purchasers of property at or prior to the time the contract or deposit receipt for the purchase of property is executed. Developers shall keep an executed copy of each disclosure document as evidence that disclosure has been provided to all purchasers of property within a Community Facilities District.

Owners of land securing 20% or more of the debt service on bonds will be required to provide financial information, as deemed appropriate by the City, for inclusion in the continuing disclosure document the City must provide annually and will also be required to provide written undertakings to provide financial and operating data as required by the SEC’s Rule 15c2-12 and by the underwriter of the bonds.

Additionally, the continuing disclosure document shall be reported to City Council annually, to receive and file.

12. PROPERTY OWNER SUPPORT
In the instance of multiple property owners, the applicant shall be required to produce letters evidencing other property owners’ support for the scope and establishment of the District as an attachment to the application. The applicant must have concurrence of at least 60% of the other property owners to be included in the proposed District, unless there is an overriding need for the public facilities, or the applicant is willing to separately fund the facilities for non-participating property.

13. LAND USE APPROVALS
Properties proposed for inclusion in a District must possess a land use determination such that proposed development land uses and specific facility requirements can be adequately assessed.

14. EXCEPTIONS TO THESE POLICIES
The City may find in limited and exceptional instances that a waiver to any of the above stated policies is reasonable given identified special City benefits to be derived from such waiver. Such waivers are granted only by action of the City Council based upon specific public purpose and/or health and safety findings.

A waiver of certain provisions of these policies may also be relevant for the refunding of outstanding special assessment and Community Facilities District debt.

15. APPLICATION PROCESS
Early communication with the City is encouraged to assist applicants in evaluating the feasibility of available financing programs and to discuss program procedures.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 16

Menifee Mayor and City Council
May 20, 2026
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City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies A.Preapplication Conference: Applicant meets with City to discuss the proposed project and application procedures.

B.Application Submission: Applicant/developer shall submit an application to the City with a deposit and reimbursement agreement in the amount of $70,000 as of September 2025. The Chief Financial Officer is authorized to increase this required deposit if formation costs increase in the future. The deposit will be handled as set forth in the Deposit and Reimbursement Agreement as established by the City and approved by the applicant/developer. This deposit is for the purpose of application processing, preliminary costs, retention of appropriate consultants, and the compensation of staff time devoted to the formation of the District. The City will conduct an initial evaluation of the application to determine if it is complete and whether additional information is required.

C.Project Review: Applicant and City staff meet to discuss initial application, including any issues raised and further information that might be required. If necessary, applicant submits revised application.

D.Application Processing: Upon City determination that the application is complete, staff prepares a staff report, which forwards the request for district formation and project financing and staff recommendation to the Finance Committee for review.

E.City Council Consideration: The City Council grants or denies the application.

F.Project Initiation: Staff submits consultant contracts, reimbursement agreements and other similar items for City Council consideration.

G.Project Implementation: Applicant, staff and consultants meet to determine preliminary project schedule and begin work necessary to initiate district formation.

This document outlines district formation procedures.

16. SPECIAL ASSESSMENT DISTRICT FORMATION PROCEEDINGS FORMAT Assessment district proceedings under the Municipal Improvement Act of 1913 normally provide for the construction of improvements by the City and the financing of such improvements with improvement bonds, which are secured by a fixed lien assessment on the benefited property. In certain instances, if authorized by the City, the developer may construct the improvements (or portion thereof), which would be acquired by the City as provided in the proceedings.

The formation proceedings are subject to and contingent upon satisfaction of all environmental zoning and land use regulations. The following is a summary of the proceedings under the Municipal Improvement Act of 1913 for the formation of an Assessment District. All such proceedings are subject to the requirements of the Improvement Acts, as applicable.

A.Initiation of Proceedings. An applicant or landowner petition for City Council action initiates a request to form the District. Upon initiation, the design engineer Item Title: 12.1
Public Safety Community Facilities District
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Policy CC-20

Special Assessment and Community Facilities District Goals and Policies prepares plans, specifications and cost estimates of the proposed public improvements. The assessment engineer begins preparing the Engineer’s Report, including the assessment diagram, assessment roll, description of improvements and preliminary cost spread. If required, the Environmental Impact Report “EIR” consultant begins processing the appropriate environmental documentation for the public improvements.

B.Presentation of Report. Upon completion of the preliminary engineering work, the City Council adopts a resolution of intention to form the assessment district, approves the Engineer’s Report, calls for construction bids, authorizes the future sale of bonds, sets the date, time and place for the public hearing and directs assessment notices to be mailed.

C.Bid Process. Finance Department receives construction bids. Assessment engineer modifies the assessment roll and Engineer’s Report and notifies property owners of revised assessments.

D.Public Hearing. City Council holds public hearing at which written protests are presented and public testimony is taken. If a majority protest has not been received, City Council approves district formation, awards bids, orders construction work, confirms the assessments, directs the Chief Financial Officer/Treasurer to mail assessment notices and approves the bond sale.

E.Cash Collection Period. Treasurer may receive cash payments during the 30 days following confirmation if property owners elect to pay off the assessment or portion thereof prior to the issuance of bonds.

F.Authorize Issuance of Bonds. City Council determines the balance of unpaid assessments and provides for the issuance of bonds to be secured thereby.

G.Sale of Bonds. Bonds are issued in exchange for the cash proceeds of the sale, which are held by the City or its fiscal agent (or paying agent/registrar) and utilized for the construction of public improvements described in the Engineer’s Report.

17. MELLO-ROOS COMMUNITY FACILITIES DISTRICT FORMATION PROCEEDINGS A Community Facilities District is a legally constituted governmental entity created for the purpose of financing public facilities and services.

The formation proceedings are subject to and contingent upon satisfaction of all environmental, zoning and land use regulations. The following is a summary of the proceedings for the formation of a Community Facilities District under the Mello-Roos Act.

All such proceedings are subject to the requirements of the Mello-Roos Act.

A.Initiation of Proceedings. Proceedings must be instituted when a written request is made by a petition signed by 10% of the registered voters or 10% of the landowners by area. The petition shall be accompanied by payment of a deposit in an amount determined by the City Council to be sufficient to pay for costs incurred in conducting the proceedings.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 18

Menifee Mayor and City Council
May 20, 2026
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929 of 942

City of Menifee
4929-4925-4992v3/200299-0000
Policy CC-20

Special Assessment and Community Facilities District Goals and Policies B.Resolution of Intention. Within 90 days of the receipt of a written request or petition, the City Council will adopt a resolution of intention to establish a Community Facilities District. The resolution will state the name of the proposed CFD, the types of facilities or services to be financed and that, except where funds are otherwise available, a special tax to pay for such facilities and services will be annually levied. The resolution of intention shall also fix a time and place for a public hearing between 30 and 60 days after the adoption of the resolution of intention, describe the method of levy and apportionment of the special tax and describe the proposed voting procedure. In addition, the resolution may specify conditions under which the obligation to pay the special tax may be prepaid and permanently satisfied. The City Council directs its responsible officers to study the proposed district and to file a report at or before the public hearing describing the proposed public facilities and services and an estimate of costs.

C.Public Hearing. Protests against the establishment of the Community Facilities District, the extent of the CFD or the furnishing of specified types of public facilities or services may be made orally or in writing by interested persons or taxpayers. If 50% or more of the registered voters, or 6 registered voters, whichever is more, residing within the proposed CFD or the owners of 1/2 or more of the area of land in the proposed CFD file written protests against the establishment of the CFD, the proceedings are abandoned. If the protests are directed toward certain types of facilities or services, or against a specified special tax, those specific items may be eliminated from the resolution forming the CFD. The hearing may be continued for up to 30 days without special findings and up to 6 months if the City Council makes specified findings.

D.Resolution of Formation. If the City Council decides to establish the Community Facilities District, it will adopt a resolution of formation containing similar information as contained in the resolution of intention.

E.Election. If the City Council determines to form the Community Facilities District, it submits the question of whether special taxes should be levied to an election of the voters (or landowners if fewer than 12 registered voters reside within the boundaries of the proposed CFD for each of the 90 days prior to the date of the public hearing) of the proposed CFD. Combined with the tax proposition, there may be a proposition on the question of incurring bonded indebtedness. The tax, in order to be levied, must be approved by two-thirds of the votes cast and thereafter levied by adoption of an ordinance of the City Council. The Mello-Roos Act provides that the election shall be at the next general election or at a special election to be held between 90 and 180 days following the close of the protest hearing. The unanimous consent of the qualified electors within the proposed district and the concurrence of the election official conducting the election may shorten the election time limits.

F.Special Tax Bonds. A Community Facilities District may be created solely to provide the services permitted by statute. However, most CFDs have been created specifically for the purpose of levying special taxes to service bonded indebtedness incurred by the CFD in order to finance the construction of facilities.

Maintenance Districts may also be created. The proceedings to authorize and incur Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 19

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May 20, 2026
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Policy CC-20

Special Assessment and Community Facilities District Goals and Policies bonded indebtedness usually parallel the proceedings for formation of the CFD and the authorization to levy the special tax, although the bond proceedings could be conducted separately and at a later date. The proceedings to authorize bonded indebtedness involve a resolution of intention, public hearing and election; all conducted in a manner very similar to proceedings to form the community facilities district and levy the tax. CFD bonds may be sold competitively or through negotiated sale and may bear fixed or variable interest rates.

In some cases, a Community Facilities District may provide specified facilities for only a portion of the land within the CFD. In that event, the Act provides for the formation of improvement areas for which separate elections are conducted and to which a specified special tax applies.

18. ROLES AND RESPONSIBILITIES
A. The City Manager or designee is responsible for administering this policy and procedure.

B. All employees are responsible for compliance with this policy and procedure.

C. The annual continuing disclosure document shall be reported to City Council, to receive and file.

D. An annual review of outstanding bonds shall be evaluated for refunding.

19. DEFINITIONS
Unless the context otherwise requires, the terms employed in the following policies shall have the meanings specified below:
“Bonds” means bonds authorized and issued under the Mello-Roos Community Facilities Act of 1982 or the Municipal Improvement Act of 1911 and the Improvement Bond Act of 1915.
“City” means the City of Menifee.
“Community Facilities District” means a special tax district established by a local government under the Mello-Roos Community Facilities Act of 1982 to finance public infrastructure and services in a specific geographic area. “District” means a Community Facilities District formed under the Mello-Roos Community Facilities Act of 1982 or an assessment district formed under the Improvement Act of 1911 or the Municipal Improvement Act of 1913, as amended. “Improvement Acts” means current enabling legislative Acts of 1911, 1913, 1915 and 1972.
“Mello-Roos Act” means the Mello-Roos Community Facilities Act of 1982.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 20

Menifee Mayor and City Council
May 20, 2026
Page
931 of 942

City of Menifee Policy CC-20

Special Assessment and Community Facilities District Goals and Policies "Public Facilities" means improvements authorized to be constructed or acquired under the Mello-Roos and Improvement Acts including, but not limited to, fees for capital facilities imposed by public agencies as a condition to approval of the development encompassed by the district or as a condition to service the district. "Value" or "Fair Market Value" means the value established by the appraisal undertaken to establish value-to-lien ratios for a land-secured financing.

20. Revision History
Revision No.

Date
Approve Approved By: Comments
0 9/6/2011 City Council Original Policy (FN-9)
1 4/15/2020 City Council Revision, Policy No. Changed to CC-20 2 9/3/2025 City Council Revision, Security/Deposits/Sale as Rentals 3 TBD City Council Revision, Public Safety CFD
_______________________________
Ricky Estrada, Mayor
Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 21

Menifee Mayor and City Council
May 20, 2026
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City of Menifee Page 1
Community Facilities District No. 2026-S (Safety Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2026-S (SAFETY SERVICES)

OF THE CITY OF MENIFEE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2026-S (Safety Services) (the “CFD No. 2026-S” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2026, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2026-S, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2026-S, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2026-S including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2026-S, or any designee thereof associated with fulfilling the CFD No. 2026-S reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2026-S or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2026-S for any other administrative purposes of CFD No. 2026-S, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Menifee, or his or her designee. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.
“CFD” or “CFD No. 2026-S” means the City of Menifee Community Facilities District No. 2026-S (Safety Services).
“City” means the City of Menifee.
“County” means the County of Riverside.

Item Title: 12.1
Public Safety Community Facilities District
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May 20, 2026
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City of Menifee Page 2
Community Facilities District No. 2026-S (Safety Services) “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1 st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. “Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2026-S as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi-Family Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied. “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2026-S in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an Item Title: 12.1
Public Safety Community Facilities District
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City of Menifee Page 3
Community Facilities District No. 2026-S (Safety Services) operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2026-S, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2026, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property or Multi- Family Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to May 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2026-2027 for a Single Family Property and Multi-Family Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2026-2027
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $525
Multi-Family Property RU $411
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2027 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%).

C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2026-S.

D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2026-S, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 24

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City of Menifee Page 4
Community Facilities District No. 2026-S (Safety Services) encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property or a Multi- Family Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

E. APPEALS

Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

F. MANNER OF COLLECTION

The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

However, the CFD No. 2026-S may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.

G. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 25

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City of Menifee Page 5
Community Facilities District No. 2026-S (Safety Services)

APPENDIX A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2026-S
(SAFETY SERVICES)

SUMMARY
Safety Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2026-S (Safety Services) will be as follows for the Fiscal Year 2026-2027:
$525 per residential unit for Single Family Property
$411 per residential unit for Multi-Family Property
Annual Escalation - On each July 1, commencing on July 1, 2027 the Maximum Special Tax for Developed Property of Single Family Property and Multi-Family Property shall increase by four percent (4.0%).

Annex #
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
Item Title: 12.1
Public Safety Community Facilities District
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Community Facilities District No. 2026-S (Safety Services)

APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2026-S
(SAFETY SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2026-S, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2026-S for the benefit of the properties within the boundaries of CFD No. 2026-S and said services may be financed by proceeds of the special tax of CFD No. 2026-S only to the extent that they are in addition to those provided in the territory of CFD No. 2026-S before CFD No. 2026-S was created.

Item Title: 12.1
Public Safety Community Facilities District
Item Page Number: 27

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CITY OF MENIFEE
SUBJECT: Appointment to Council Subcommittees and Regional Boards and Commissions
MEETING DATE: May 20, 2026
TO: Mayor and City Council
PREPARED BY: Stephanie Roseen, City Clerk
REVIEWED BY: Stephanie Roseen, City Clerk
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Discuss and ratify appointments of City Council representatives to City Council Subcommittees and Regional Boards and Commissions in keeping with City Council Policy No. 2.

DISCUSSION
Background
Mayor Ricky Estrada, a member of the United States Air Force Reserve, was deployed beginning in October 2025 and returned on April 30, 2026. During his absence Mayor Pro Tem Karwin assumed the duties and responsibilities of the Mayor to ensure continuity of leadership and City operations.

To maintain effective governance during this time, the City Council previously considered and implemented adjustments to the Council’s regional board, commission, and committee assignments. These appointments ensured continued representation and participation in key regional and local bodies, while providing staff with clear direction throughout the Mayor’s deployment.

With Mayor Estrada’s return, it is appropriate for the City Council to revisit and consider appointments to regional committees and commissions, as well as the City’s standing and ad hoc committees. This action will allow the Council to formally reestablish representation, confirm or modify prior assignments.

City Council Committee and Regional Boards, and Commission Assignments City standing committees, regional boards, and regional commissions serve as key platforms for collaboration, policy development, and representation on issues that impact the City both locally Item Title: 12.2
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City of Menifee Staff Report
Appointment to Council Subcommittees and Regional Boards and Commissions May 20, 2026

3 3
2 9
and regionally. These bodies allow Councilmembers to engage directly with partner agencies, advocate for the City’s interests, and participate in joint initiatives that advance community priorities. Standing committees focus on specific policy areas within the City, while regional boards and commissions connect the City to broader interagency efforts, fostering relationships and ensuring the City’s voice is heard in regional decision-making.

The attached Roster reflects the current appointments of Councilmembers to established subcommittees, ad hoc committees, and regional boards and commissions. Prior to the Mayor’s leave, he was appointed to the following:
•Finance Subcommittee
•City & School Districts Committee
•Parks Ad Hoc Committee
•Alternate for Western Riverside Council of Governments (WRCOG) Executive Committee Following the review and appointment of representatives for the established Council subcommittees and regional boards and commissions, the City Clerk will notify the various agencies of any changes made. Any changes to Council representation on regional boards or commissions may also require the filing of additional Form 700 Statements of Economic Interests to reflect leaving and/or assuming offices.

Per City Council Policy No. CC-02, the roster will be brought back to the City Council in December 2026 following the certification of the November election for review and appointments for 2027.

STRATEGIC PLAN OBJECTIVE
Regular City Business

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. Current Regional Committee and Commissions Roster
Item Title: 12.2
Appointment to Council Subcommittees and Regional Boards and Commissions Item Page Number: 2

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Updated: 9/3/25
4 6
0 6
7 City of Menifee
2025 City Council Standing and Ad Hoc Committees,
Regional Boards and Regional Commissions Roster
Agency/Board Meeting dates and
times
Representative(s)
or Board Member(s) Alternate
Riverside County Transportation
Commission (RCTC) 2nd Wednesday/month
@ 9:30 a.m. Karwin Deines
Western Riverside Council of
Governments (WRCOG) Executive
Committee
1st Monday/month
@ 2:00 p.m. Karwin Diederich
Western Riverside Regional
Conservation Authority (WRCRCA)
1st Monday/month
@ 12:30 p.m. Temple Diederich
Riverside County Habitat Conservation
Agency (RCHCA)
2nd Thursday, various
months
@ 11:30 a.m.

Temple Diederich
Riverside Transit Agency (RTA) 4th Thursday/month
@ 2:00 p.m. Deines Karwin
Southern California Association of
Governments (SCAG)
Annual General
Assembly
(May 1-2, 2025)
Temple Diederich
Menifee Chamber of Commerce 4th Thursday/month
@ 8:30 a.m. Diederich Karwin
Southwest Communities Financing
Authority (Animal Friends of the Valley)
Biannual - 1st Thursday
of May/ October
@ 2:00 p.m.

Deines Karwin
Southwest Elected Collaborative Group 3rd Thursday/month @ 12:00 p.m. Diederich Temple
Southwest Higher Education Coalition 3rd Tuesday/month
@ 1:00 p.m. Diederich Temple
Item Title: 12.2
Appointment to Council Subcommittees and Regional Boards and Commissions Item Page Number: 3

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Updated: 9/3/25
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7 Council Standing Committees Meeting Dates and Times Members Finance Committee Dates set by Committee Members Deines, Temple City & School Districts
Committee Annual – Prior to start of new school year Karwin, Diederich Council Ad Hoc Committee Purpose Members
Parks Ad Hoc Committee
Review and provide input regarding opportunities for
collaboration between agencies regarding parks and
recreational facilities operated by Valley-Wide Recreation and Park District within Menifee city limits as needed for the year
Deines, Temple
Innovation District Specific Plan
Ad Hoc Committee
Preparation of a Specific Plan for the Economic
Development Corridor – Southern Gateway (EDC-SG) to
create a new framework for maximizing the area’s
potential as an innovation district as needed for the year.

Diederich, Temple
Central Park Amphitheater Ad
Hoc Committee
Review and provide guidance on the vision and initial
programming for the Central Park Amphitheater as
needed for the year.

Deines, Karwin
Item Title: 12.2
Appointment to Council Subcommittees and Regional Boards and Commissions Item Page Number: 4

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